DXP Enterprises Inc (DXPE)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 148,899 | 139,322 | 95,036 | 40,271 | -27,742 |
| Interest expense | US$ in thousands | 63,927 | 53,146 | 29,135 | 21,089 | 20,571 |
| Interest coverage | 2.33 | 2.62 | 3.26 | 1.91 | -1.35 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $148,899K ÷ $63,927K
= 2.33
The interest coverage ratio for DXP Enterprises Inc has exhibited fluctuations over the past five years. Starting at a concerning level of -1.35 in December 31, 2020, the company experienced a significant improvement in its ability to cover interest payments with a ratio of 1.91 by December 31, 2021. The trend continued positively over the next two years, reaching levels of 3.26 by December 31, 2022, and 2.62 by December 31, 2023, indicating a healthier financial position and increased ability to meet interest obligations. However, there was a slight dip to 2.33 by December 31, 2024. Overall, the upward trend in the interest coverage ratio demonstrates an enhanced capacity to pay interest expenses, but it is important for the company to continue monitoring and managing its debt levels to ensure sustainable financial health.
Peer comparison
Dec 31, 2024